The use of the same material twice is so the colors and the displacement follow each other check the materials and you'll see usually the second one shows a displacement value ... then in the chor I vary the position of the material by moving both in this case in a z direction but it could also be rotated moved in x and /or y direction
http://www.hash.com/forums/index.php?showtopic=41325
just posted this recently in Tinkering Gnome
or here is another version I just played with with the animated material changing speed and direction
newcolor.mov
newcolor.zip
Thanks and yes it was cloth, string was small circle swept over line drawing, the swept item copied and had cloth applied then simulated.. this was quick test and I agree Robert more patches would have reacted better
Okay I redid the model so I could get a rebuilt explode model and changed the gravity pull to have it fall slower when newton applied
Used material effector to get the rust this is quick run not sure why all the pieces did not flow but that could be fixed hope this helps
locktest.mov
locktest.zip